A growth-focused portfolio with a strong tilt towards technology and global equities

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Growth Investors

This portfolio suits an investor with a growth-oriented profile, comfortable with higher risk for the potential of substantial long-term returns. The significant allocation to technology and international equities is ideal for someone looking for exposure to dynamic sectors and global diversification. It's best suited for individuals with a longer investment horizon who can withstand short-term volatility in pursuit of higher growth.

Positions

  • Fidelity Total Market Index Fund
    FSKAX - US3159116934
    55.00%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS
    FTIHX - US31635V6386
    25.00%
  • Fidelity® MSCI Information Technology Index ETF
    FTEC - US3160928087
    10.00%
  • Vanguard Small-Cap Growth Index Fund ETF Shares
    VBK - US9229085959
    10.00%

The portfolio is primarily invested in stocks (99%) with a minimal cash holding (1%), showcasing a clear growth orientation. The allocation is heavily weighted towards the Fidelity Total Market Index Fund at 55%, followed by the Fidelity Total International Index Fund at 25%, indicating a balanced approach between U.S. and international exposure. The specific allocations to the Fidelity® MSCI Information Technology Index ETF and Vanguard Small-Cap Growth Index Fund ETF Shares, both at 10%, underscore a deliberate emphasis on the technology sector and small-cap growth stocks. This composition suggests an aggressive strategy aimed at capitalizing on global market movements and the dynamic tech sector.

Growth Info

With a Compound Annual Growth Rate (CAGR) of 14.40% and a maximum drawdown of -34.54%, the portfolio has demonstrated robust growth with significant volatility. The days contributing to 90% of returns being concentrated in just 30 days highlight the portfolio's reliance on short, sharp gains, which is characteristic of growth-focused investments. This performance, while impressive, also underscores the higher risk associated with this investment strategy. Investors should be prepared for potential short-term losses in exchange for long-term growth.

Projection Info

Monte Carlo simulations, using historical data to forecast potential outcomes, suggest a wide range of future portfolio values, with a median increase of 590.5%. While these projections provide a positive outlook, it's crucial to remember that they are based on past trends, which may not always predict future performance accurately. This method helps in understanding potential volatility and risk but should not be the sole basis for investment decisions.

Asset classes Info

  • Stocks
    99%
  • Cash
    1%
  • Other
    0%
  • Not Classified
    0%

The portfolio's near-exclusive investment in stocks aligns with its growth profile but comes with higher volatility and risk. The minimal cash holding offers limited liquidity and reduces the buffer against market downturns. Diversifying into more asset classes, such as bonds or real estate, could provide stability without significantly compromising growth potential, especially during volatile market conditions.

Sectors Info

  • Technology
    33%
  • Financials
    14%
  • Industrials
    11%
  • Health Care
    9%
  • Consumer Discretionary
    9%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Energy
    3%
  • Basic Materials
    3%
  • Real Estate
    3%
  • Utilities
    2%
  • Consumer Discretionary
    1%

The technology sector's dominant 33% share of the portfolio reflects a strong conviction in tech's growth prospects but also introduces sector-specific risk. Financial Services and Industrials, at 14% and 11% respectively, along with other sectors, contribute to diversification. However, the heavy tech weighting may lead to increased volatility, particularly in response to sector-specific events or economic shifts affecting tech companies disproportionately.

Regions Info

  • North America
    77%
  • Europe Developed
    10%
  • Japan
    4%
  • Asia Emerging
    4%
  • Asia Developed
    3%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%
  • Europe Emerging
    0%

The geographic allocation shows a significant tilt towards North America (77%), with meaningful exposure to developed Europe and emerging Asian markets. This distribution supports diversification across different economic cycles and regional dynamics but may underrepresent opportunities in emerging markets and other developed regions. Expanding geographic diversity could capture global growth trends more effectively and mitigate region-specific risks.

Market capitalization Info

  • Mega-cap
    39%
  • Large-cap
    27%
  • Mid-cap
    19%
  • Small-cap
    11%
  • Micro-cap
    2%

The portfolio's market capitalization breakdown, with a lean towards mega (39%) and big (27%) cap stocks, supports stability and growth. Medium, small, and micro caps represent a smaller, yet significant, portion, introducing higher growth potential alongside increased risk. This blend supports a balanced approach to capturing market-wide growth while seeking outperformance through smaller, agile companies.

Dividends Info

  • Fidelity Total Market Index Fund 1.00%
  • Fidelity® MSCI Information Technology Index ETF 0.40%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • Vanguard Small-Cap Growth Index Fund ETF Shares 0.50%
  • Weighted yield (per year) 1.24%

The overall dividend yield of 1.24% reflects the growth-centric nature of the portfolio, which typically prioritizes capital appreciation over income generation. While the yield from the Fidelity Total International Index Fund stands out at 2.40%, the lower yields from the technology ETF and small-cap growth ETF align with expectations for such growth-focused investments. Investors seeking income in addition to growth might consider a slightly higher allocation to dividend-yielding assets.

Ongoing product costs Info

  • Fidelity Total Market Index Fund 0.02%
  • Fidelity® MSCI Information Technology Index ETF 0.08%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • Vanguard Small-Cap Growth Index Fund ETF Shares 0.07%
  • Weighted costs total (per year) 0.04%

The portfolio's total expense ratio (TER) of 0.04% is impressively low, maximizing the potential for net returns. Keeping costs low is crucial for long-term growth, as even small differences in fees can significantly impact total investment returns over time. This efficient cost structure is a strong aspect of the portfolio, supporting its growth objectives effectively.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

The current allocation demonstrates a well-considered balance between risk and return, as suggested by its alignment with the Efficient Frontier. This concept indicates the portfolio is optimized for the highest possible return at a given level of risk. However, continuous review and adjustment are essential to maintain this balance, especially considering the dynamic nature of the tech sector and global markets.

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